‘Can AI replace lawyers on construction contracts?’

With the emergence of chatbots like ChatGPT, one construction manager asks our contract clinic if artificial intelligence could be used instead of lawyers for drafting construction contracts? Bill Barton responds

The Question

I’ve heard that artificial intelligence (AI) can be used to deal with contractual issues. Could a chatbot replace a lawyer for drafting and reviewing the contract on my next construction project?

The Answer

Would people mourn the passing of lawyers? It is debatable. Nevertheless, they provide a service based on experience and skill. They suggest and provide words that convey a meaning, agreed by everyone, to describe a position or a risk.

However, are they about to be replaced by AI or ChatGPT?

There already exists the ability for contracts to be created with little human involvement. For example, human input into terms and conditions for consumer goods like a new kettle is surely on the wane.

There are standard forms of building contracts, such as JCT and NEC, which pre-date the computer. These could be produced by AI, providing the scope of changes were minimal.

So, is there any reason why AI cannot be used to produce the bulk of a more complex contract? After all, there are several standard clauses for insurance, deleterious materials, copyright. There are also any number of boilerplate clauses.

provided for. Then consider what changes you need to make and how far to go.

It is rarely a case of a 180-degree change in drafting. More often, subtle tweaks rebalance risks between parties in such a way as to divide a risk 70:30 on one item and perhaps 60:40 on another. Can AI predict and provide for such variations in contract wording, based on the stance, experience, risk appetite and beliefs of individual parties to a project?

Therein lies an issue with computer drafting. You will have to teach the computer how to differentiate between different risks. It will need to understand that the risk a party takes across the entirety of a contract is not the same. It is also likely that the risk one party is willing to accept on a contract is not the same as a different party would take based on exactly the same information.

You will have to teach the computer how to differentiate between different risks. It will need to understand that the risk a party takes across the entirety of a contract is not the same

It is not that AI cannot produce a large part of even a fairly complex contract. The concern is whether AI can make it specific and bespoke to the project. Will it address the specific issues and concerns of the parties, the imbalance of bargaining position, the difference in risks, liabilities, obligations and rewards?

To create a successful contract, you must first understand the basic division of all these issues between the parties, then consider how they are already

That is because your appetite for –or fear of – risk will be changed by your personal experience. If a party to a project suffered from major delays and extra costs due to weather and or materials, then they will pay greater attention to those risks in their next contract.

AI-generated contracts exist and provide a valuable alternative in the right circumstances. However, with a slight re-emphasis on punctuation, the meaning of a sentence or clause can be changed entirely. Therefore, with ongoing requirements to amend, adapt and in some instances alter risk and wording, humans still have the upper hand. ●

Bill Barton is a partner at Barton Legal.

What made you go into construction?

My dad was a heating engineer, and I would work with him during the school holidays and occasional weekends. The sites were not very large, so you got to know the other trades quickly. I was in awe of how the projects would come together –from shabby dilapidated shells into sparkling new homes or offices.

I was intrigued as to how it all worked, how it was pulled together, the translation from drawings into reality – something that still remains with me today. The projects get bigger, and the end product changes, but the fascination still remains.

It is interesting now to look back and, although the projects were much smaller, the principles of successful project delivery still remain the same irrespective of size and complexity.

What do you remember from your first project?

It was a rather impressive but tired and worn-down townhouse just off the Finchley Road in north London. At the time (late 1980s) there was a lot of refurbishment projects going on in the area and it seemed like every other house had a skip outside and was covered in scaffolding. I remember the people, their characters, the humour. It felt like spending the day with your mates rather than working.

You would laugh all day while learning new skills – it was the best environment to work and learn in. Something I look back on now is the diversity on the job too: different ethnicities, social backgrounds and accents. All working together to deliver the same project, with a great atmosphere.

It is one of the reasons I think the construction industry is a great industry for young people – it is an industry that is so diverse in both its workforce and its scope. It is an environment where you can learn new skills and techniques in a setting where you can put them to immediate use and benefit.

What was the best advice you were given?

The best advice is often the simplest advice. Early in my career I was fascinated with how everything came together, what happened when and how in a project’s life cycle, even if I didn’t know what a project’s life cycle looked like at the time.

I probably wanted to know too much detail about everything, trying to have an in-depth understanding of all aspects of the industry. I was advised that our industry was far too broad and diverse to know everything and that I was far better understanding the principles of good construction delivery rather than trying to achieve detailed knowledge and understanding of all its areas.

Craig Holliday CV

● Atomic Weapons Establishment (AWE): Head of construction, 2021 to present Principal construction manager, 2013 to present Senior construction manager, 2012-13 Construction manager, 2008-12 Senior clerk of works, 2005-08

● Senior technician, Worcester Bosch Heat Systems, 1998-2005

● Time-served apprenticeship and engineer, British Gas, 1989-94

It has served me well over the years, feeling confident that no one knows everything and building trust in others, better placed than yourself to deliver what is required.

How do you think becoming a fellow has helped you in your career?

Personally, it gave me a huge sense of achievement. One thing I love about the industry is that there are many routes into levels of management and leadership within construction.

From someone who started as an apprentice heating engineer, I think I was always looking for a level of recognition within construction management. Following the routes of chartered membership within the CIOB gave me that and becoming a fellow was something that I always wanted to complete.

What advice would you give to someone starting in construction today?

Make the most of the opportunities that are placed in front of you and do not focus on being too specific at the start of your career. I come across a lot of apprentices and graduates that are not sure which direction they want to take in the industry and some that are set on a very strict and structured pathway. If training opportunities are placed in front of you that do not

If training opportunities are placed in front of you that do not fit your specific direction, take them anyway. Any learning opportunities you can get will not be wasted fit your specific direction, take them anyway. The industry is very diverse in nature: any learning and development opportunities you can get in any stage of your career will not be wasted and will serve you well in your future.

What has changed the most about construction since you’ve been working in it?

Without doubt the safety culture and legislation behind it. It is now woven into everything we do on our sites and senior leadership on our projects are driving it.

When I started in the industry it was an afterthought and construction workers were placed at an unnecessary risk. Thankfully legislation has changed, and the industry has become immensely focused on the health, safety and wellbeing of its workforce.

All of which needs to continue and the focus on mental health issues increase – as the statistics for the construction industry remain concerning. ●